The following are the current month's balances for Toys Galore Inc.,before preparing the trial balance. What amount should be shown for Common Stock on the trial balance?

Question

The following are the current month's balances for Toys Galore Inc.,before preparing the trial balance.  What amount should be shown for Common Stock on the trial balance?

Quizplus · Accepted Answer

Common Stock is a component of the equity section of the balance sheet and represents the amount of capital invested by the owners/shareholders of the company. The question does not provide any information on the issuance or repurchase of common stock during the month, and therefore the balance would remain the same as the beginning balance of $8,250.

The Following Are the Current Month's Balances for Toys Galore